• Please try to select the correct prefix when making a new thread in this folder.

    Discuss is for general discussions of a financial company or issues related to companies.

    Info is for things like "Has anyone heard of Company X?" or "Is Comany X legit or not?"

    Compare is for things like "Which of these 2 (or more) companies is best?"

    Searching is for things like "Help me pick a broker" or "What's the best VPS out there for trading?"

    Problem is for reporting an issue with a company. Please don't just scream "CompanyX is a scam!" It is much more useful to say "I can't withdraw my money from Company X" or "Company Y is not honoring their refund guarantee" in the subject line.
    Keep Problem discussions civil and lay out the facts of your case. Your goal should be to get your problem resolved or reported to the regulators, not to see how many insults you can put into the thread.

    More info coming soon.

Problem Pellucid FX - refusal to pay profit or disclose exact details of alleged breach of terms

I am having an issue with a company

mfosterpsl

Private, 1st Class
Messages
30
I opened an account in December 2013 and traded successfully on it for several months. In March 2014 I tried to make a withdrawal. The response to this was slow and initially only partially filled.

"Sorry for the long delay on this withdrawal, we are currently in the process of changing banks which complicated things a little bit.

The amount of $XXXXX Euro's has been wired to the account number you provided, please note it can take 2 - 5 days to appear on your balance. As per Mr. Hunt's instructions, the wire fee is being paid by us.

We realize that this is $XXXXX Euro's less than you requested, however Mr. Hunt is willing to send you the difference via paypal if you wish it, please let us know"

The wire transfer was never received and finally the full withdrawal amount was received in my account directly via PayPal via Damon Hunts account and his wife's.

So in March they did permit me a withdrawal of profits.

In April my account was suspended and I eventually received the same email as the above:

"Our risk department has looked into your trades and complete trading history and determined
you are violating our terms and conditions namely this:
Without derogating of the provisions of the following Acceptable Use Policy, any of the
following activities are explicitly prohibited and shall be deemed fundamental breach of the
Terms of Service Agreement:
• Latency exploitation in trading.
Several of your trades have been found to be in violation of our terms and agreements in this regard.
All your deposits will be refunded but your profits will not be paid due to the facts above.
Please note that latency exploits are stealing from the broker as the brokerage is taking the
slippage in the market while you profit off of it, (taken from broker).
This is not trading against the market, it is trading against the broker and dangerous not
only for the broker but for all clients within the brokerage.
Your PellucidFX account has also been permanently suspended for these violations
"

My deposits were eventually refunded - BUT they considered the money already paid back to me in March as part of that refund - so have withheld ALL profits ever made on that account.

I have asked for details of exactly which trades have breached terms and conditions, which I have never received, the final email from them on the matter received yesterday:

"Neither PellucidFX nor our LP needs or wants to make this exploit public. It is not profit stealing when there is only a loss. There are no profits in this kind of trading, that's why it is forbidden and illegal as per our T&A's.

We will not be providing any further information.

With regards to your deposits, we accepted you as a client in good faith as well. And then you tried to exploit us. We have returned the total of funds which you have deposited with us. We consider this matter closed."

I have told them I will be posting on here and have invited them to respond.
 

PipStar

Sergeant
Messages
223
Any broker that gives this excuse "Terms of Service Agreement: Latency exploitation in trading" to deny profits is normally a scam.
 

RahmanSL

Major
Messages
2,890
I was self debating whether to jump into this thread to throw in my two bits....and I think I should.
If what you on about is the "latency trade" whereby you find the broker's MT4 trading platform is out of whack and EVERY SINGLE TRADE OPENED IMMEDIATELY SHOWS A PROFIT, then I would say you are wasting your time because NO broker will nor can honor that type of trades.

It's a strange situation (and extremely fun to play with while that situation exist cause you can trade in large 20.0 to 100s of lot sizes without any fear of losing), and I have that happened to me with at least three of the brokers I used (one was well regulated too). But at the end of the day, every single trades WILL be (and rightly so) cancelled and so it WILL BE A BIG WASTE OF TIME.

There are at least two similar thread cases on FXOpen and another broker here at the FPA somewhere.
 

mfosterpsl

Private, 1st Class
Messages
30
Hi Rahman. If the above is the case is it not important then that everyone knows that this broker's MT4 platform is defective so they don't waste several months of trading only to be told all the trades are invalid. However, the email never suggests that their platform is in the wrong - but that I have been deliberately trading in that way to exploit them.

Is it possible that their platform has been out of whack since I open my account in December?
 

bigdolly

2nd Lieutenant
Messages
1,259
Actually price ineffieciencies are very popular way to scam broker :). Hope you are not one of that cute guys, who managed to do that :)
 

RahmanSL

Major
Messages
2,890
Hi Rahman. If the above is the case is it not important then that everyone knows that this broker's MT4 platform is defective so they don't waste several months of trading only to be told all the trades are invalid. However, the email never suggests that their platform is in the wrong - but that I have been deliberately trading in that way to exploit them.

Is it possible that their platform has been out of whack since I open my account in December?

If that happened over "several months" then something is very wrong with their system because, with the brokers that I experienced such latencies, the trades were removed the next day....and, of course, I expected that to happen and never bother to "ask why" even though they never notify me officially.

PELLUCID Representative will be the best person to clarify this matter.
 
Top